Company for P2P Crypto trading

[0lmeR]

Hi everyone.

I am planing to incorporate a company for P2P trading on all possible crypto exchanges (Binance, OKX, Bybit, etc) as verified merchant. Most of the customers are going to be individuals obviously. The business model is pretty simple: the company is getting verified on the exchanges, buy/sells crypto for fiat using P2P marketplace, receives money from individuals for crypto and sends money to individuals for crypto.

Based on the experience, what is the best set up for this type of activity? Let's assume that the UBOs, shareholders and directors are no going to come from unfriendly jurisdictions but from EU, UK, Canada.

1) Opting for CASP license in EU?
2) Canadian MSB?
3) Setting up a front-shop company which will "trade CS/DOTA/etc skins" and open a verified account in Binance to justify the incoming payments from individuals?

Scenario 1,2 is more difficult due to regulatory requirements and requires more costs to administer it (having MLRO/AML officer, etc). Also, the share capital requirements are going to be pretty high due to MICA requirements if opting for EU jurisdiction.
Scenario 3 is risky in terms of operating an account in any EMI as they might easily close it.

Perhaps there is another scenario which I am not aware of.

I would be grateful for any advices here.
Thanks.

 

[W Fish]

What exctly is your question, what problem are you solving?
Anyways, banking is a much bigger problem for this activity than incorporation.

 

[0lmeR]

What exctly is your question, what problem are you solving?
Anyways, banking is a much bigger problem for this activity than incorporation.

Yes, indeed. This is the most important issue.

The problem I want to solve is that I don`t want the company's account to be closed due to massive amount of incoming payments for individuals which are also using P2P platform to exchange the crypto.

Therefore, I have in mind three options, described above.
1) Opting for CASP license in EU?
2) Canadian MSB?
3) Setting up a front-shop company which will "trade CS/DOTA/etc skins" and open a verified account in Binance to justify the incoming payments from individuals?

 

[forward]

Hi everyone.

I am planing to incorporate a company for P2P trading on all possible crypto exchanges (Binance, OKX, Bybit, etc) as verified merchant. Most of the customers are going to be individuals obviously. The business model is pretty simple: the company is getting verified on the exchanges, buy/sells crypto for fiat using P2P marketplace, receives money from individuals for crypto and sends money to individuals for crypto.

Based on the experience, what is the best set up for this type of activity? Let's assume that the UBOs, shareholders and directors are no going to come from unfriendly jurisdictions but from EU, UK, Canada.

1) Opting for CASP license in EU?
2) Canadian MSB?
3) Setting up a front-shop company which will "trade CS/DOTA/etc skins" and open a verified account in Binance to justify the incoming payments from individuals?

Scenario 1,2 is more difficult due to regulatory requirements and requires more costs to administer it (having MLRO/AML officer, etc). Also, the share capital requirements are going to be pretty high due to MICA requirements if opting for EU jurisdiction.
Scenario 3 is risky in terms of operating an account in any EMI as they might easily close it.

Perhaps there is another scenario which I am not aware of.

I would be grateful for any advices here.
Thanks.

you can still use VASP in EU in certain jurisdictions for +- 18 months

that would be a good start with proper account in a friendly EMI...

 

[Clearsky Network]

you can still use VASP in EU in certain jurisdictions for +- 18 months

that would be a good start with proper account in a friendly EMI...

VASP is a good option, but make sure you can comply with MICA requirements before investing money in it.

 

[cuno]

I have no clue, but doesn’t Cyprus and Malta seem just right for such a business?

Getting a bank account is probably difficult no matter where in the world you set up a company for your business.

 

[Fulton Abraham Sanchez]

Hi 0lmeR

Nevis is often considered a strong option for setting up a P2P crypto trading company due to its favorable regulatory environment, asset protection laws, and business privacy advantages. About Scenario 1 and 2: Unlike EU CASP or Canadian MSB options, Nevis offers a more streamlined incorporation process without excessive compliance burdens, while still maintaining credibility with exchanges and financial institutions. Then the scenario 3 looks better, many in the industry look for jurisdictions that balance operational flexibility with regulatory acceptance, and Nevis tends to fit well within that framework. It might be worth exploring how its structure aligns with your specific needs.

Hi everyone.

I am planing to incorporate a company for P2P trading on all possible crypto exchanges (Binance, OKX, Bybit, etc) as verified merchant. Most of the customers are going to be individuals obviously. The business model is pretty simple: the company is getting verified on the exchanges, buy/sells crypto for fiat using P2P marketplace, receives money from individuals for crypto and sends money to individuals for crypto.

Based on the experience, what is the best set up for this type of activity? Let's assume that the UBOs, shareholders and directors are no going to come from unfriendly jurisdictions but from EU, UK, Canada.

1) Opting for CASP license in EU?
2) Canadian MSB?
3) Setting up a front-shop company which will "trade CS/DOTA/etc skins" and open a verified account in Binance to justify the incoming payments from individuals?

Scenario 1,2 is more difficult due to regulatory requirements and requires more costs to administer it (having MLRO/AML officer, etc). Also, the share capital requirements are going to be pretty high due to MICA requirements if opting for EU jurisdiction.
Scenario 3 is risky in terms of operating an account in any EMI as they might easily close it.

Perhaps there is another scenario which I am not aware of.

I would be grateful for any advices here.
Thanks.

 

[Phillip]

1) Opting for CASP license in EU?

This is a waste of time. Too much hassle, too much reporting, too little gain. You will eradicate profits on paying your compliance.

2) Canadian MSB?

This is good but you should deliver some large volumes to the EMI you will onboarding to, so that the can see you will be profitable to work with.

Because again they need to do a lot of compliance on your transactions. You should have Sumsub setup, proper AML docs from a law firm, some MLRO with experience and not Lithuanian students as usual

3) Setting up a front-shop company which will "trade CS/DOTA/etc skins" and open a verified account in Binance to justify the incoming payments from individuals?

This is pure ML but it will probably work. You risk like crazy but you make a lot. I do not suggest it but I also do not doubt the fact that it will work at least for a temporary period

Also the Nevis suggested above can be possible because some of these offshores have no regulation for crypto yet and you can just run it as you want. Do not expect any banking relationships except some fragile Dominica bank in the Best Case Scenario. Could work with a payment agent. Still, for anything that needs fiat rail, I do not see it as fit.